refers to the way a company finances itself through some combination of loans, bond sales, preferred stock sales, common stock sales, and retention of earnings.

Q: a) Determine the market value proportions of debt, preference shares and ordinary equity comprising…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: From a practical point of view, according to financial compliance, dividends must be: a)…

A: Dividend= profits distributed to the shareholders

Q: How can I tell if a company is financed by debt or equity?

A: here you need to know what is debt and equity debt means you're borrowing money from an outside…

Q: How to use Return on Equity ratio to determaine whether a company needs to issue stocks or bonds to…

A: Return on equity is a ratio which is used by companies to measure financial performance and helps…

Q: The net effect to a corporation of the declaration and payment of a cash dividend is to: a. increase…

A: Cash dividend means the dividend paid to the company's stockholders in the form of cash. This can be…

Q: Which one of the following is a payment of either cash or shares of stock that is paid out of…

A: Retained earnings are the part of the profit left over after payment of all the direct and indirect…

Q: Why does a Chief Financial Officer need to know their company's cost of equity?

A: A chief financial officer is one of the  top-level executive. The CFO is a financial controller who…

Q: When a company issues (i.e., sells) common shares to investors in exchange for cash, the effect of…

A: When shares are issued in cash then cash is increased by the no. of shares issued multiply be the…

Q: The sale of stock and the sale of bonds are reported as financing activities. Are payments of…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: To what extent a company uses debt financing (or financial leverage) in business operations?

A: The question is based on the concept of capital structure of a company, the capital structure is a…

Q: Which of the following is primarily interested in the liquidity of a company? O Long-term creditors…

A: Liquidity of the company means short term debt paying capacity of the business. It means how much a…

Q: Which of the following is true of retained earnings? Retained Earnings is decreased by net income.…

A: Retained earnings are the profits that are attributable to equity shareholders accumulated over a…

Q: The total market value of the firm's equity is determined by Select one: O a. the firm's accountants…

A: Total market value of a stock is calculated as the price of the stock trading and the number of…

Q: Stocks or equity securities are: O a. Solely used by large corporations O b. Managed by your local…

A: There are various sources of finance such as debt, equity etc

Q: What is the blend of long-term financial sources used to finance the firm which may include debt,…

A: Long term financial sources could be debt, equity or preferred stock. The blend of these is required…

Q: Which of the following items could appear in a company's cash flow statement? 1. Proposed dividends.…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: How does a company utilize stocks and bonds in financing growth? Identify the major sources of…

A: Financial capital is the money used to fund businesses and some public projects. It is made…

Q: Capital structure of a company is more appropriately calculated using the: book value of debt and…

A: Capital structure of a company consists of debt, equity or any other source of finance used to…

Q: __________ securities are investments in preferred or common stock that represent ownership in a…

A: Definition of sources of finance: Companies can raise capital in two ways. 1 ) Debt 2 ) By issuing…

Q: 1)Distinguish between the concepts of prudence and accrual with respect to their effects on…

A: We will answer the first question since the exact one was not specified. Please resubmit the…

Q: What is the distinction between that of Paid-in-Capital and Retained Earnings, in both differences…

A: Paid in capital means the amount contributed by share holder in company as share capital Retained…

Q: What is the purpose of Statement of Changes in Equity in a Company

A: The financial statements of the business includes the income statement, cash flow statement,…

Q: the issuance of its stock is an example of which type of business activity?

A: First we should know the meaning of all this terms,  a) Operating :- Its name is explaining…

Q: Which of the following financial instruments gives a creditor relationship with the company? a.…

A: The term stock i.e. either equity (common stock) and preferred stock refers to ownership or equity…

Q: Which of the following statement is NOT a function of the stock market in a market economy? A. to…

A: Introduction : In simple words, stock market refers to the sum of buyers and sellers of stocks of…

Q: What are some reasons that a company might choose common stock as means of financing their business…

A: Common Stock Common stock represents the ownership of a corporation by its stockholders. It allows…

Q: Which one of the following is the ultimate objective of modern financial management for a…

A: objective of financial manager is to maximise shareholders value.

Q: A company is involved in investing activities when these: Multiple Choice activities involve…

A: Investing activities include buying and selling of long term assets such as building, Machinery,…

Q: True or False Acceptability is concerned with whether an alternative addresses the key issues…

A: CFROI is the acronym of Cash Flow Return on Investment. It is a formula used to determine how much…

Q: Which of the following is considered as a liability in the balance sheet of a firm? Accounts…

A: Balance sheet of a firm involves both assets as well as liabilities

Q: Indicate future earnings Return on common prospects. stockholders' equity Indicate the ability to…

A: Ratios are calculated in order to compare the financial data of the company by analyzing the…

Q: It is the share of profits and retained earnings that a company pays out to its shareholders. * O…

A: Ordinary shares, preference shares and debt capital are three types of sources by which company can…

Q: Capital structure refers to how the firm finances its operations and growth through a combination of…

A: Security: It can be defined as a financial instrument that is used for raising or investing funds by…

Q: On which financial statement would a banker find the cash balance of a company?  statement of…

A: Cash represent the amount company hold to meet his business expenses or in other words cash is part…

Q: Describe the accounting for bonds payable, including bonds issued at face amount, bonds issued at a…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 1. Answer the following questions for the Mason brothers. a) How are paid-in-capital and retained…

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: Which one of the following is the ultimate objective of modern financial management for a…

A: Modern financial management is referred as one of the function of an organization which is concerned…

Q: Which of the following actions would improve a firm's liquidity?   a.   Selling shares and…

A: Liquidity is referred to as an ease of the conversion of the assets or security, which can ready…

Q: Question Capital structure refers to how the firm finances its operations and growth through a…

A: Capital structure is the proportion of capital from different sources of finance in the total…

Q: The issuance of stock and the issuance of bonds are reported as financing activities. Are payments…

A: Financing activities includes the activities by which funds were raised by the company by way of…

Q: Explain how the use of more debt in the company affects return on equity (ROE).

A: ROE or Return on Equity relates to portion of equity capital invested by owner that are generally…